The break-even point for a large grain farming operation was calculated to be 2 million bushels of corn. Break-even analysis would take place during which step of the price-setting process?
A) identify pricing objectives and constraints
B) determine cost, volume, and profit relationships
C) estimate demand and revenue
D) select an approximate price level
E) make special adjustments to list or quoted price

Question

Quizplus · Accepted Answer

Break-even analysis is used to determine cost, volume, and profit relationships, which helps in understanding how many units need to be sold to cover costs.

The Break-Even Point for a Large Grain Farming Operation Was